The OECD’s latest Interim Economic Outlook highlights that the global economy remains resilient, but has been seriously exposed to geopolitical shocks and renewed inflationary pressures driven by energy market volatility. While exposure to Middle East-related disruptions varies across OECD countries, persistently high energy prices had already been eroding industrial competitiveness and raising serious risks of de-industrialisation in energy-intensive sectors even before the current escalation.
This reinforces the urgency of advancing the energy transition in a way that delivers on security, affordability and sustainability at the same time. Governments and businesses must accelerate efforts to diversify energy supply, scale up investment in modern and resilient energy infrastructure, and strengthen energy efficiency to reduce overall demand intensity.
At the same time, growing disruptions and risks affecting key energy transport routes underline the importance of keeping global trade flows open, secure and predictable to avoid further supply shocks and price volatility.
“These renewed inflationary pressures highlight the urgent need to reduce complexity and regulatory burden for doing business, while reinforcing competitiveness across our economies,” said Hanni Rosenbaum, Executive Director of Business at OECD. “In a high-cost environment, enabling companies to operate, invest and innovate efficiently is essential to sustaining growth and resilience.”
Read the OECD's Interim Economic Outlook here: https://www.oecd.org/en/publications/2026/03/oecd-economic-outlook-interim-report-march-2026_254a8d56.html